NasdaqGS:TRUE

Stock Analysis Report

Executive Summary

TrueCar, Inc., together with its subsidiaries, operates as an Internet-based information, technology, and communication services company in the United States.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has TrueCar's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

TRUE

1.4%

US Interactive Media and Services

1.3%

US Market


1 Year Return

-73.4%

TRUE

7.8%

US Interactive Media and Services

5.9%

US Market

Return vs Industry: TRUE underperformed the US Interactive Media and Services industry which returned 7.8% over the past year.

Return vs Market: TRUE underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

TRUEIndustryMarket
7 Day5.0%1.4%1.3%
30 Day-24.7%-2.7%-1.9%
90 Day-37.2%-1.7%-1.8%
1 Year-73.4%-73.4%7.8%7.8%8.3%5.9%
3 Year-65.4%-65.4%43.1%43.1%45.6%36.2%
5 Year-82.5%-82.5%92.4%92.2%66.1%47.9%

Price Volatility Vs. Market

How volatile is TrueCar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TrueCar undervalued compared to its fair value and its price relative to the market?

37.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TRUE ($3.26) is trading below our estimate of fair value ($5.21)

Significantly Undervalued: TRUE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TRUE is unprofitable, so we can't compare its PE Ratio to the Interactive Media and Services industry average.

PE vs Market: TRUE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate TRUE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TRUE is good value based on its PB Ratio (1x) compared to the US Interactive Media and Services industry average (3.1x).


Next Steps

Future Growth

How is TrueCar forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRUE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TRUE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TRUE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TRUE's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TRUE's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TRUE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TrueCar performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TRUE is unprofitable, but has reduced losses over the past 5 years at a rate of 8.9% per year.

Accelerating Growth: Unable to compare TRUE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TRUE is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (12.3%).


Return on Equity

High ROE: TRUE has a negative Return on Equity (-15.41%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TRUE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TRUE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is TrueCar's financial position?


Financial Position Analysis

Short Term Liabilities: TRUE's short term assets ($268.9M) exceeds its short term liabilities ($87.1M)

Long Term Liabilities: TRUE's short term assets (268.9M) exceeds its long term liabilities (43.0M)


Debt to Equity History and Analysis

Debt Level: TRUE is debt free.

Reducing Debt: TRUE has no debt compared to 5 years ago when its debt to equity ratio was 0.06%.


Balance Sheet

Inventory Level: TRUE has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TRUE's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TRUE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TRUE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 130.6% per year.


Next Steps

Dividend

What is TrueCar's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TRUE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TRUE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if TRUE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TRUE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRUE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of TrueCar's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Mike Darrow (61yo)

0.4yrs

Tenure

US$1,219,238

Compensation

Mr. Michael Darrow, also known as Mike, has been President at ALG, Inc., since January 15, 2018. Mr. Darrow has been Executive Vice President of OEM and Partner Development at TrueCar, Inc. since November  ...


CEO Compensation Analysis

Compensation vs. Market: Mike has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: TRUE's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: TRUE's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Chip Perry (65yo)

    • Tenure: 0yrs
    • Compensation: US$3.02m
  • Alison Sternberg

    Senior VP of Investor Relations

    • Tenure: 0yrs
  • Lucas Donat (57yo)

    Executive VP & Chief Brand Officer

    • Tenure: 3.4yrs
  • John Pierantoni (47yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: US$1.06m
  • Jeff Swart (51yo)

    Executive VP

    • Tenure: 3.8yrs
  • Noel Watson (43yo)

    CFO, Chief Accounting Officer & Treasurer

    • Tenure: 0.3yrs
  • Jim Menard

    Senior Vice President of Dealer Sales

    • Tenure: 3.6yrs
  • Paul Edmonds

    Senior Vice President of Dealer Marketing & Operations

    • Tenure: 3.4yrs
  • Mike Darrow (61yo)

    Executive VP of OEM & Partner Development and Interim President & CEO

    • Tenure: 0.4yrs
    • Compensation: US$1.22m
  • John Foster

    Executive Vice President of People

    • Tenure: 0.3yrs

Board Members

  • Robert Buce (70yo)

    Director

    • Tenure: 14.5yrs
    • Compensation: US$224.98k
  • John Krafcik (57yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$204.98k
  • John Mendel (64yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$217.48k
  • Ion Yadigaroglu (49yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$149.98k
  • Wes Nichols (54yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$222.48k
  • Chris Claus (59yo)

    Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: US$241.38k
  • Phil McKoy (46yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$311.16k
  • Erin Lantz (40yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$215.91k

Company Information

TrueCar, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TrueCar, Inc.
  • Ticker: TRUE
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$346.162m
  • Shares outstanding: 106.18m
  • Website: https://www.truecar.com

Number of Employees


Location

  • TrueCar, Inc.
  • 120 Broadway
  • Suite 200
  • Santa Monica
  • California
  • 90401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRUENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2014
5TCDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2014

Biography

TrueCar, Inc., together with its subsidiaries, operates as an Internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar Websit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:15
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.